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Running Head: SHARIA AND WESTERN BANKING
Sharia and Western Banking
SHARIA AND WESTERN BANKING
Compare and contrast sharia banking and Saudi financial management practices with
western banking and financial management practices.
Sharia banking and Saudi banking financial management practices are often associated
with banking systems that are based on the Islamic religion as there points of reference. Sharia
banking always follows the teaching of the sharia laws in administering its services to the people
who bank with it. For instance, it does not major its operations on getting profits but rather on
helping the less privileged. Western banking, on the other hand, is a way of banking that takes
place in the western region and mostly it deals with profit-making and lending capital.
When comparing the two ways of banking, a lot of differences and similarities are seen. Some of
the differences include sharia banking majoring in its main focus on ethical investments and
predatory lending. Sharia banking is more based on investments and urges most of its members in
investing their property.
On the other hand, western banking is kind of different from sharia banking because in as
much as its members invest, the bank its self does not take it upon themselves to impose it on its
members that they are supposed to invest.
In the Sharia banking, the management always has a way of sharing a proportion of the risk and
profit in a joint adventure with its members, for instance, if there is the profit that is made, it is
always shared equally amongst the members and the bank, similarly, if the bank faces some loses,
it also distributes the cost on the members maki...
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